Dear All,
Gratuity component as it is applicable for all the employee, this will be part of the CTC or CTC + gratuity is shown.
As per Gratuity Act what is the correct method to show to employee on paper for an IT Product Development company.
Kindly elaborate.
Thanks & Regards,
Pourna.
From India, Hyderabad
Gratuity component as it is applicable for all the employee, this will be part of the CTC or CTC + gratuity is shown.
As per Gratuity Act what is the correct method to show to employee on paper for an IT Product Development company.
Kindly elaborate.
Thanks & Regards,
Pourna.
From India, Hyderabad
Hi,
Gratuity is the monetary amount which is payable to the employee of an organisation under the Payment of Gratuity Act 1972. An employee is eligible to receive the gratuity amount only after they complete a period of 5 or more years with the company. It is better Gratuity can be shown out of CTC.
From India, Madras
952Gratuity is the monetary amount which is payable to the employee of an organisation under the Payment of Gratuity Act 1972. An employee is eligible to receive the gratuity amount only after they complete a period of 5 or more years with the company. It is better Gratuity can be shown out of CTC.
From India, Madras
Hi,
You may show in the CTC.
Some Companies will have tie up with LIC for Gratuity ( under Group Gratuity scheme) and what ever premium paid by the employer they use to show it in the CTC.
But deducting a portion of wages/salary from employees towards Gratuity is not legal.
Similarly thought it might form part of CTC Gratuity will be eligible only if the employee completes 5 years of continuous service. Employee have no right to claim before completion of 5 years of service.
From India, Madras
You may show in the CTC.
Some Companies will have tie up with LIC for Gratuity ( under Group Gratuity scheme) and what ever premium paid by the employer they use to show it in the CTC.
But deducting a portion of wages/salary from employees towards Gratuity is not legal.
Similarly thought it might form part of CTC Gratuity will be eligible only if the employee completes 5 years of continuous service. Employee have no right to claim before completion of 5 years of service.
From India, Madras
Gratuity is a statutory payment forming a part of the employer's expenses for employees, so it can be included in CTC. What is to be shown in the pay slip is what is prescribed by law, in the respective rules. I presume you are covered as per the Shops & Establishment Act of the State Government, then the format prescribed under that Act has to be followed, otherwise, it has to be as per the Payment of Wages Act. In both cases gratuity premium cannot be indicated in the wage slip.
From India, Mumbai
From India, Mumbai
In my considered opinion, C.T.C is just an accounting tool of assistance facilitating negotiation in wage/salary determination of employees and as such it cannot override the statutory provisions of any Labor Law or the Indian Contract Act,1872. All the expenses as well as perks the value of which can be computed in terms of money, whether they are statutory or otherwise, incurred by the employer to keep an employee under his employment would form the C.T.C per annum from the employer's accounting perspective. In other words, it is the total annual cost of employment per employee. Thus, there is a distinction between the monthly salary comprising of different components actually payable to the employee and the annual total cost of his employment in which the monthly salary stands subsumed. If there is identity of understanding of this difference on the part of both the employer and the employee, the question of "deduction from" or "addition to" CTC would not arise in respect of certain benefits whether statutory or contractual.
From India, Salem
From India, Salem
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc